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Senate of Pennsylvania
Session of 2015 - 2016 Regular Session


Posted: December 15, 2014 03:35 PM
From: Senator John C. Rafferty, Jr. and Sen. Andrew E. Dinniman
To: All Senate members
Subject: Pipeline Impact Fee
In the near future, we will be re-introducing legislation, SB 1499, which establishes a pipeline impact fee in the Commonwealth.

Throughout Pennsylvania, residents have been affected by the construction of natural gas lines. With the surge in natural gas drilling, many residents of Pennsylvania are experiencing the effects of the growth in this industry. Although the construction of this energy infrastructure is often done very efficiently, many communities experience a period of reduced quality of life and long term impacts to the environment as a result of the construction process. Increased traffic congestion, noise, environmental impacts, and associated safety risks are experienced by those who live, work or commute in proximity to these projects.

Our legislation would create an impact fee that is calculated based on the acreage of linear feet plus right-of way width of a pipeline using the county average land value in an affected area. The fees generated would be collected by the PUC and deposited into a Pipeline Impact Fund where they will be disbursed to affected areas. 10 percent of the money will be used to administer the fund. 50 percent of the money in the fund will be used to make an annual payment to each county where an affected area is located. The remaining 40 percent will be paid to the municipality in an affected area. This legislation only applies to pipelines constructed after the effective date of this act.

Introduced as SB557